Tuesday, April 2, 2013

Tuesday roundup (04-02-13

Europe's leaders paralysed as EMU jobless rate hits record high: Eurozone unemployment reached a record 12pc in February and looks certain to ratchet higher as fiscal cuts deepen and manufacturing continues to struggle, raising the spectre of social explosion across southern Europe. (The Telegraph) Unemployment across the eurozone at 12 percent as survey indicates recession carried on in Q1 (The Associated Press) We Just Got To See The European Crisis That's Far Bigger Than Cyprus Or Italy (The Business Insider)

Underwater: The Netherlands Falls Prey to Economic Crisis: The Netherlands, Berlin's most important ally in pushing for greater budgetary discipline in Europe, has fallen into an economic crisis itself. The once exemplary economy is suffering from huge debts and a burst real estate bubble, which has stalled growth and endangered jobs. (Spiegel Online)

Italian President Giorgio Napolitano Is Trying To Avert A Crisis Of Systemic Proportions (Forbes)

Unfortunately, the Cyprus Crisis Is Not Yet Over by Mohamed El-Erian (CNBC)

BOJ’s Kuroda Faces One-Year Window on Ending Japan Deflation (Bloomberg)

Regulators Let Big Banks Look Safer Than They Are: Capital-ratio rules are upside down—fully collateralized loans are considered riskier than derivatives positions by Sheila Bair (The Wall Street Journal)

What about Peak Oil Demand? (Attain Capital Management blogs) Peak demand theory shakes up oil debate: Cheaper substitutes and fuel efficiencies will hit oil demand (The Financial Times) Oil Demand Could Peak by End of Decade, Citi Analysts Say (The Wall Street Journal)

     The aim of this blog is to show (mostly from reports in mainstream respected news sources) that there is reason to believe that both the United States and the global economies remain fragile in the wake of the financial crisis of 2008 and that a number of threats that exist today could, if they worsened, bring about economic depression -- not just a minor depression, but a depression worse than the Great Depression. This blog further attempts to show that the financial crisis of 2008 was largely a result of the devastating consequences of excessive risk taking and the absence of effective regulation of such behavior. Furthermore, this blog maintains that not only have the lessons that should have been learned from this experience not been learned, but that the risks to the economy, including the persistent building up of "too big to fail" institutions, have actually increased since the crisis began. Finally this blog also brings to light, from time to time, reports of a parallel threat to economic well-being developing in the energy industry, which suggest an energy shock may be coming much closer in time than is generally imagined.

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